U.S. Crude Inventories Hit Highest Level in 80 Years

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U.S. Crude Inventories Hit Highest Level in 80 Years
BY JACOB MASLOW



The price of crude for delivery in March slipped 3.1% to $46.31 per barrel, on the New York mercantile exchange last week. This reflects the fact that U.S. inventories of crude oil have hit an 80 year high. Think about that. The amount of oil inventory that the United States has has never been higher since the early 1930s. A different dynamic is definitely at play with oil production and global demand.

During normal times, a large chunk of that oil would be consumed. It is easy to feel good about high oil inventory levels, because this obviously means paying a lower price at the pump. Unfortunately, the persistence of high U.S. oil inventories may hint at the fact that we are either headed towards a global recession, or are already in one.

Full story: http://www.streetwisejournal.com/u-s-crude-inventories-hit-highest-level-80-years/5298/

-- Streetwise Journal 2015-01-27

[umbanda]

Do you know what a country do when is facing the possibility of a long war???

Store all the oil its can....

[F430murci]

Appears to be several issues here. Obama/Saudi has continued to release reserves and step up production in an apparent effort to drive prices down to pressure Russia. This was predicated back in May 2014 so should not be a surprise now. In December, US increased production again even though inventories were at or near the highest points and supply was exceeding demand. Accordingly, it is very difficult to say if demand has truly dropped or the market is being flooded with oil for other reasons.

US in droves is also turning to electric and hybrid vehicles. See them everywhere and there are many great options now. Even Porsche drivers are turning to hybrid Cayenes and Panamericas. Lexus has multiple models offered in hybrid. Teslas are out if stick and back ordered for months.

Long story short, could big oil also be driving down prices in an effort to make more exoensive hybrids and electric cars not as an attractive option as they are when oil prices are extremely high?

I agree there is global recession concerns in some European countries, China and Russia. These are not new and I think there is some other explanation for US inventory levels.

[JingerBen]

Geopolitical factors effect the price of oil more than supply and demand.